What is the acquisition cost of the franchise

Reference no: EM132673673

Problem 1: At the beginning of current year, Christine Company signed an agreement to operate as a franchise of Ace Company for an initial franchise fee of $12,000. Christine Company paid $4,000 down and agreed to pay the balance in four equal annual payments of $2,000 at the end of each year. Christine Company can borrow at 14% for a loan of this type. The present value factors at 14% are as follows: Present value of 1 at 14% for four periods = 0.59; Present value of an ordinary annuity of 1 at 14% for four periods = 2.91. What is the acquisition cost of the franchise?

Reference no: EM132673673

Questions Cloud

How pay for performance bonuses will be paid : As the team lead for your department, you have been asked to create a policy outline that details how pay for performance bonuses will be paid.

What is Jayne gain or loss : Jayne purchased General Motors stock 6 years ago for $20,000. In the current year, she sells the stock for $35,000. What is Jayne's gain or loss

Full morning of minor office surgeries scheduled : Dr. Smith has a full morning of minor office surgeries scheduled for today. Sarah, his nurse, has set up the room and prepared the patient.

Describe the types of change the organization : Describe the types of change the organization could experience and how to create procedures for dealing with each.

What is the acquisition cost of the franchise : 14% for four periods = 0.59; Present value of an ordinary annuity of 1 at 14% for four periods = 2.91. What is the acquisition cost of the franchise?

Using business analytics : How do you think business analytics can help your current organization with their decision-making processes?

Describe brockriede process : Describe Brockriede's process. Use a specific conflict that you have observed, (or one you could reasonably anticipate) to illustrate how the process works in

What caused this loss in revenue in that time period : Based on the concepts and discussions in class, explain what caused this loss in revenue in that time period. Be specific!

Identify common components of grant proposal : Identify the common components of a grant proposal. Discuss the technical, political, and ethical issues related to writing a grant proposal.

User Account

All Pages